European Stars And Stripes (Newspaper) - March 25, 1987, Darmstadt, Hesse                                Wednesday March 25, 19b7 the stars and stripes Page 3 economic developments satisfy . Japan Germany moving to Spur Domestic growth Miami up Treasury Secretary James Baker said monday he is satisfied Germany and Japan Are fulfilling pledges to stimulate their economics. Baker meeting with reporters cover in the annual meeting of the inter american development Bank replied yet when asked whether he Tell Japan and Germany Are holding to their word. Those two nations pledged last month during meeting of the world s leading industrialized nations to Lake More Steps to Spur their internal economic growth. The United Stales pushed for that commitment became it believes the Jap anese and German economics need to grow before citizens or those nations will be Able to buy Mare . Products. Baker refused to elaborate on Why he was satisfied but a . Official speck ing on the condition he not be identified cited several recent events As pleasing to the Reagan administration.  you be watched the news wires Over the past week or 10 Days you be seen the chairman or the president of the Bundesbank Germany s Central Bank say that he thought they could Cut their interest rates if the untied states did the official said. You be seen Chancellor Helmut Kohl say there might be some room for fiscal stimulus in  he added. And you be seen All sorts of com ments and stories coming out of Japan of what they might do once they get past that stalemate they be got in Trie diet parliament in ther vat their tax Reform. So i read All of that to mean both Reagan s America key economic indicators unemployment percent of labor Force percent change 1881 7.6% 1981 l.9% 82 85 is 6611.1 33 84 85 86 82 2.5 i 3.6 6.4 2.7 12,5 Federal deficit Trade in Lance i Federl debt billions of dollars billions of dollars per fiscal year 1982-1127.8 83-207.8 84 -105.3 85-212,3 66 -220.7 67 -173.2 estimates Chicago Tribune graphic source government reports trillions of dollars attend of fiscal year 1s82hi$1.16 83 1.38 84 countries Are looking to adopting More he recent agreement among six Western stimulative measures which is what we Industrial nations to stabilize currency wanted and what the. Paris Accord Calls rates for the official concluded referring to latin and Caribbean nations hold 53 percent of the vote while the United slates has 34.5 percent. Other lending nations share the remainder. Baker had proposed that the rules be changed to require a 65 percent vote for any program to win passage instead or the current simple majority. That would mean the United states would need to find just one ally to overturn the latin Caribbean bloc. Latin and Caribbean leaders plus representatives from outside the Western hemisphere have proposed in turn thai a 60 percent majority be imposed. Baker has previously expressed Dis pleasure Over that idea but in his speech monday he did not specifically reaffirm his Call for a 65 percent majority possibly signalling that he would Settle for 60 percent. Most latin leaders have vehemently opposed any loss of control Over the ids because they consider the 29-year old Agency to be the one International Lender that share their Point of View to Salve the officials bruised feelings. Baker offered a powerful Balm Money. The id since 1959 has Lent More than $35 billion to development pro Grams throughout latin America and the Caribbean. Ii finances its work with Cash contributions from its 44 member nations and from Money borrowed on inc strength of repayment promises issued by id members. Baker proposed giving another $9 Bil lion in . Backing for the id provided the Bank in turn takes a closer look at Loans puts More conditions on them and hires better trained personnel. Safe from Page 1 in Quality of life the effect of the declining Dollar in Safe varies depending on where activities receive their funds. Appropriated fund projects receive Money from the budget Congress Autho Rizes. Housing construction and Mission activities Are just two examples of items paid from the si.17 billion appropriated fund budget for fiscal 1987 in Safe about hair the budget or $585 Mil lion will be paid out in foreign Curren cies covering expenses in almost every category of operations Neal said. And a falling Dollar Means higher costs. Taking Germany As an example the Dollar now is Worth 1.80 German Marks while for fiscal 1987, the Safe budget office had counted on the Dollar being Worth 2.46 Marks Neal said. Despite that shortfall appropriated fund projects in Safe feel no effect from the Dollar s decline because of the foreign currency fluctuation account. The account is managed at the air Force level and ensures that All appropriated fund projects have Money despite the movement of the Dollar. So far in fiscal 1987, Safe has received about 1127 million from the account. As far As we know nothing has had to be Cut Back yet Neal said. Funding Leisure life on base is a More difficult task but morale welfare and recreation officials also say no cutbacks Are expected. Non appropriated fund activities such As the clubs and recreation centers run by mar do not receive Money from Congress. Funds come through sharing the Money made by profitable activities and through charging fees for services. About $9.5 million of Safe mar s si6.3 million budget will be paid in for eign currencies with the majority of that Money covering construction projects. That Means As the Dollar declines the Cost of non appropriated fund activities goes up. And there is no foreign currency fluctuation account to dip into. The Choice is to limit your Cor is Rue lion or get More Money said col. James k. Wiles Safe director of mor ale welfare and recreation. In 1984, mar began an ambitious $25 million program to upgrade open messes across the command. At that Lime i million German Marks Cost 1328,000, Wiles said. The same amount or Marks now costs $562,000. To make up the difference mar has borrowed $5.2 million from the air Force welfare Board. Unlike the foreign currency account Money from the Wel fare Board must be paid Back with inter est. That borrowed Money now is help ing renovate a Bowling Center at Raf Fairford England the san Vito As Italy consolidated open mess the Owci Bruecken a Germany consolidated open mess and the rams Cin a officers open mess. The Creek positive program i Safe Effort designed to encourage tour extensions in Europe also is help ing mar find the Money for upgrading facilities. Under Creek positive millions of Dol Lars Worth of non appropriated fund Ren ovation projects ranging from Barbecue pits to Day care centers arc being designated As appropriated fund activities Ami will receive Money despite the falling Dollar. Officials still arc in the processor determining which projects will receive the new designations. Mar officials also expect increased Revenue As the steadily rising Cost of Oil base living and entertainment drives people on base for recreation. But there arc no guarantees said Gene r. Silvers. Chief of the mar consumer services division. Well see More people Only if we do a Good Job in terms of  he said people won t come just because we re the Only game in town we re going to have to earn  Usa eur from papa 1 it Bills at a 2.46 Mark to the Dollar rate during this fiscal year. Today a Dollar buys i so Marks. I Don t think you can really attribute anything to the fall of the  said it. Col. James e. Graham who helps manage the command s 11,7 billion opera Tion and maintenance budget. As the fiscal year plays out some major repair projects might be postponed Graham said. Even with stable funding a project might slip. If funding were reduced lower priority projects would be delayed until funding became available. What s important is that if you re supposed to be going to Graf Grafe Woehr training area you re going to go. We Haven t Cut any training. Is somebody going to Fin your sink yes. Arc we going to fire any local National employees  Graham described defense department fluctuation accounts As a form of revolving credit that lakes effect when the Dollar drops below the government s budgeted Exchange rate. Surplus Money generated when the Dollar rises above that budgeted rate is returned to the account. As Long As the Pentagon can provide funding to keep the fluctuation accounts solvent Graham said the financial picture in Europe should remain pretty much the same. While the fluctuation accounts give budget planners the luxury of what Graham called a constant Dollar the command faces the Usua  and Downs of the budget process which Range from Surprise appropriations to sudden budget cutbacks. I could walk into my office and get a phone Call and someone could be handing me $125 million. Or same thing they could be taking si25 million away. But that s not the effect of the Dollar. Thai s the nor Mal budget process he said. We do have problems. It s a function of there s never enough Money. But we arc executing the pro Grams we be been provided resources for. It s not going to keep us from fixing quarters or fixing the Barracks or sending someone to Ira Ini  non appropriated fund programs in the command could end the fiscal year by benefiting from the weak Dollar As soldiers and their families Hock to military exchanges and on Post entertainment facilities to beat the Low Dollar Exchange Rale. Use of our facilities is up and we generally come out looking of said maj. Larry Al. Stancil. Who Over sees non appropriated fund construction programs for the command. And. While Naf programs Are not Prelec Ted by cur Rency fluctuation accounts. Stancil said we re More dynamic. We have the ability to raise prices and make other management efficiencies. Also we re an ongoing fund. It s not something that mops at the end of the fiscal year. That gives us greater  if the new surge in business does t give the Naf program an outright profit this year Sencil said at least it will allow us to hold the